Journal of Exclusive Management Science – November 2017 - Vol 6 Issue 11 – ISSN 2277-5684

Opportunities of Revenue in TSRTC With Reference to Hyderabad and Secunderabad Regions

*Md Taherullah
**Prof. Badiuddin Ahmed

*Research Scholar, Rayalaseema University, Kurnool, A.P.

**Dean, SC & BM and Head, Dept.of Commerce, MANUU, Hyderabad, T.S.
Abstract
Road Transport system is the most popular medium of transport in India. Public Transport is an important
part of the nation’s economy. TSRTC came into existence on 02-06-2014 after the bifurcation of Andhra
Pradesh State. TSRTC is committed to provide consistently high quality of services and improve the
services through a process of teamwork for the utmost satisfaction of the passengers and to attain a
position of pre-eminence in the Bus Transport sector. The following paper focuses on the Financial
Performance of TSRTC and points out on the various avenues of revenues available to the corporation and
tries to take out the corporation from the financial crisis that is being observed by the corporation from its
date inception.
Key Words: Financial Crisis, Other Revenues, Traffic Revenue, Improving Financial Health.
Introduction
Road Transport system is the most popular medium of transport in India. In fact, travelling in various
parts of India is very easy, if you are aware about the transportation facilities offered by State Road
Transport Corporations including undertakings or institutions authorized by the Ministry of
Transportation, Government of India or by the State Government authorities. All the Government
authorized transport organizations have their own operational style and they try their best to provide
considerably concessional services to general public.
Public Transport is an important part of the nation‟s economy. Since the economic liberalization of the
1990‟s, development of infrastructure within the country has progressed at a rapid pace, and today
there is a wide variety of modes of transport by land, water and air. However, the relatively low GDP of
India has meant that access to these modes of transport has not been uniform.
Association of State Road Transport Undertakings
Association of State Road Transport Undertakings (ASRTU) came into existence on 13th August, 1965
to bring together all the State Road Transport Undertakings on a common platform with the aim of
pooling their resources and knowhow for dealing with various problems faced by them and help them to
improve their performance.
Telangana State Road Transport Corporation: At a glance
Formation
a) As Department of Nizam State Railway. June 1932.
b) As Department of Hyderabad State Government. 01-11-1951.
c) As A. P. S. R. T. C. 11-01-1958.
d) As T. S. R. T. C. 02-06-2014.
Vision of TSRTC
TSRTC is committed to provide consistently high quality of services and to continuously, improve the
services through a process of teamwork for the utmost satisfaction of the passengers and to attain a
position of pre-eminence in the Bus Transport sector.
Corporate Philosophy
 To provide safe, clean, comfortable, punctual and courteous commuter service at an economic fare.
 To provide employee satisfaction in financial and humanistic terms.
 To strive towards financial self-reliance in regard to performance and growth.
Guiding Principles of TSRTC
 To provide efficient, effective, ethical management of the business.

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 Journal of Exclusive Management Science – November 2017 - Vol 6 Issue 11 – ISSN 2277-5684

 To assist the State administration in attaining good governance.

 To treat the customer, i.e. passenger, as a central concern of the Corporation‟s business and provide
the best possible service.
 To explore and exploit technological, financial and managerial opportunities and developments and
render the business cost effective at all times.
 To regularly and constantly the state prove the capabilities of employees for higher Productivity.
History of United APSRTC
The origin of APSRTC dates back to June1932, when it was first established as NSR-TD (Nizam State
Rail & Road Transport Department), a wing of Nizam State Railway in the erstwhile Hyderabad State,
with 27 buses and 166 employees. During the past 77 years, it has registered a steady growth from 27
to 22,333 buses with 778 bus stations, 216 Depots and 1, 881 bus shelters.
Literature Review
Halder D. K extensively evaluated the traffic problems in Calcutta with a focus on Calcutta State
Transport Corporation (CSTC). For the lower productivity of the CSTC during the period of 1964 – 65 to
1972 – 73, the following factors were responsible viz., (i) low fleet utilization (as a result of lack of proper
preventive maintenance); (ii) higher absenteeism and (iii) evasion of fare. However, Linear Programming
(LP) Model was applied to the problem of efficient allocation of buses on different routes.
Bhatnagar, K.P. explained the role and significance of transport in India and abroad and examined
critically the growth and development of various modes of transport in India and its effect on the
economy of the country.
Sharma.K.K. extensively studied the state of affairs, problems and prospects of Motor Transport in
Rajasthan.
Khan.R.R. presented a kaleidoscope of transport network and transport management system in India.
Besides, continuing with systems approach, a model was framed for a comprehensive transport system
and transport planning. He provides an analytical study of several vital areas along with the benchmark
data for transport management.
Ali A. El-Mezawie studied the problems and prospects of 32 State Transport Undertakings in India and
observed that the performance of company form of organization is better on almost all important
counts. He recommended the exchequer an immediate relief of at least 60% in tax, and provision for
regular revision of fare at an interval of two years, failing which provision for subsidy.
Dev Arun evaluated the contributions of different modes of transport in civilized development especially
the role of road transport in connecting the lifeline of the economy.
Srivastava.S.K. portrays the historical development of various modes of transport in India keeping in
view the means to coordinate the development of transport system. He examined the effect of efficient,
cheap and well coordinated transport system to the development of the economy.
Need For the Study
 Severe financial crises in the operations of day to day services.
 Concentrated source of earnings by the corporation on Traffic revenues.
 Negligence on the „OTHER REVENUES‟ concept by the corporation.
Objective of the Study
 To Study the financial performance of TSRTC during the current financial year 2017-18.
 To analyze the importance of other revenues that can be enhanced by proper utilization of
opportunities available with the corporation.
 To suggest the suitable areas of potentials for other revenues.

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 Journal of Exclusive Management Science – November 2017 - Vol 6 Issue 11 – ISSN 2277-5684

Scope of the Study

The scope of finding of avenues to improve the revenues of the corporation is widely open as the
corporation is a gigantic structure in itself with a lot of fixed assets spread all over the state of
Telangana, through which the financial performance of the organization can be improved.
Limitations of the Study
 The study is based on the past records provided by the corporation.
 The study is restricted with technology available with the corporation.
 The study is restricted to the jurisdiction of Hyderabad and Secunderabad Regions only.
Concept of Other Revenues
This head comprises of various revenues generated by the corporation such as Int. on House building
advance that is given to the employees, Int. on Deposits of the corporation at various banks and
financial institutions, Rent on Quarters allotted to the employees, Advertisement revenues, Sale of
tender forms, Fines and penalties collected from employees and outsiders.
Table No. 1
Table showing Revenues generated under the Head “OTHER REVENUES” for HYDERABAD
REGION during the financial years of 2105-16 and 2016-17.
SL. ACCOUNT PARTICULARS 2015-16 2016-17
NO. HEAD
1 9005 Interest on House Building Advance 2,67,140 27,456
2 9007 Interest on Deposits 2,04,435 80,533
3 9101 Rent on Quarters 1,94,000 70,000
4 9121 Advertisement Revenue 3,99,02,499 3,13,48,862
5 9201 Sale of tender Forms 3,17,366 2,02,886
6 9202 Fines & Penalties employees 11,45,071 5,70,293
7 9203 Fines & Penalties others 57,10,576 3,64,186
8 9207 Forfeiture of Deposits 1,11,449 5,12,418
9 9208 Unpaid/Unclaimed Amount 11,40,863 8,55,000
10 9215 Toll plaza collected 43,11,927 12,61,545
11 9219 Clerical Charges 2,61,44,408 2,21,01,134
12 9222 Conductors Excess Cash 2,34,897 97,984
13 9226 Misc. Income 1,09,37,926 14,69,248
14 9230 Medical Advance 39,93,700 29,15,000
15 9233 Reflective Red Tape 46,41,180 27,93,270
16 9247 Govt. Assistance 5,82,84,260 3,37,07,097
TOTAL 15,75,41,697 9,83,76,912

The above table clearly depicts the fact that the Management is not concentrating on various aspects of
revenues that foregone as compared to previous year especially those revenue head should be
concentrated that are generating more revenues for the corporation such as Advertisement Revenue
that is adding a net amount of Rs. 3.99 Crores to the corporation in the 2016 but it has got reduced to
Rs. 3.13 Crores in the year 2017, which is a loss to the corporation. Next is the Clerical Charges
collected on various remittances has got reduced from Rs. 2.61 Crores in the year 2016 and got reduced
to Rs. 2.21 Crores in 2017, with a net decrease of 0.40 Crores. The next big contribution factor to the

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 Journal of Exclusive Management Science – November 2017 - Vol 6 Issue 11 – ISSN 2277-5684

corporation is the Government assistance which has been fallen down from Rs. 5.82 Crores in the year
2016 to Rs. 3.37 Crores in 2017.
Table No. 2
Table showing Revenues generated under the Head “OTHER REVENUES” for SEC’BAD REGION
during the financial years of 2105-16 and 2016-17. (Amount in crores)
SL. ACCOUNT PARTICULARS 2015-16 2016-17
NO. HEAD
1 9005 Interest on House Building Advance 25,059 21,591
2 9007 Interest on Deposits 1,33,542 44,132
3 9101 Rent on Quarters 53,386 65,261
4 9121 Advertisement Revenue 3,65,50,123 3,69,29,708
5 9201 Sale of tender Forms 12,02,265 1,55,438
6 9202 Fines & Penalties employees 86,41,274 41,67,805
7 9203 Fines & Penalties others 7,11,446 6,39,484
8 9207 Forfeiture of Deposits 3,83,404 1,07,939
9 9208 Unpaid/Unclaimed Amount 10,42,840 12,02,626
10 9215 Toll plaza collected 1,31,34,606 6,26,772
11 9219 Clerical Charges 2,99,52,888 2,24,58,554
12 9222 Conductors Excess Cash 3,68,120 1,25,933
13 9226 Misc. Income 9,39,664 5,94,001
14 9230 Medical Advance 29,50,000 27,35,000
15 9233 Sale of Reflective Red Tape 21,78,331 12,34,265
16 9247 Govt. Assistance 5,17,69,607 3,64,25,861
TOTAL 15,00,36,555 10,75,34,370

The above figures clearly depicts the fact that the Management is not concentrating on the various
aspects of revenues that got reduced as compared to previous years, especially those revenue heads
that should be concentrated which are generating more revenues for the corporation such as
Advertisement Revenue, that is adding a net amount of Rs. 3.65 crores to the corporation in the 2016
but it has got increased to Rs. 3.69 crores in the year 2017, which is a gain to the corporation. Next is
the Clerical Charges collected on various remittances has got reduced from Rs. 2.99 crores in the year
2016 and got reduced to Rs. 2.24 crores in 2017, with a net decrease of 0.75 crores. The next big
contribution factor to the corporation is the Government assistance which has been fallen down from
Rs. 5.18 crores in the year 2016 to Rs. 3.64 crores in 2017.
Opportunity of Generating New Revenue
Utilisation of Departmental Goods Transport (DGT) vehicles
Every Depot has got their own Departmental Goods Transport vehicle, which is used for the purpose of
transporting departmental goods from one place to another. The same concept can be applied for
commercial purpose also.
Instead of one there can be four to five DGT‟s in each depot and as the passenger vehicles are
provided for as Hire Special for the purpose of functions and private usage on hourly basis by which
additional revenue is generated. In this connection the DGT‟s which are closed vehicles can be used for
transportation of goods for outsiders also as “packers and Movers”, this will generate additional revenue
for the corporation. Here is a detailed study about the Hire Special concept hiring a bus for private use.

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A bus is hired for private usage purpose to be used in functions, pilgrimage, outings, industrial
visits etc. on following terms and conditions.
Table No. 3
Table showing Hire Special Charges schedule prevailing TSRTC
No. of Slabs Duration of Time in Hrs. Operation in Kilometres
1 4 60
2 6 90
3 8 120
4 10 150
5 12 180
6 14 210
7 16 240

Table No. 4
Rate per Kilometre for various categories of buses supplied
S. No. Category of Bus Rate Per Kilometre
1 Ordinary 38
2 Express 39
3 Deluxe 39

Above 16 hours the charges laid are 15 kilometre charges for every hour of delay in addition to the
normal charges. It can be understand with the help of following example. If an Express bus is hired for
20 Hrs and it has operated for 260 Kilometers the charges that has to be paid are as follows.
Normal charges: 260*39= 10140
Additional for 4 Hrs: 4*39*15=2340
Total Charges 12,480
Now the question arises by this type hire service what is the profit to the corporation. The revenue
generated out one bus for one day hire is Rs. 12,480/- now let us estimate what is the cost incurred to
earn this revenue is one day attendance for Driver, average salary of driver per day is 2,250/- and the
diesel consumed is Rs. 2,878/-(57*260/5.15) that is rate*No. of kilometres operated/No. of kilometres
per Litre of diesel.
Add the opportunity cost that has been foregone by going on this hire special service i.e. daily earning of
the bus Rs.3500/-. Now the total cost come to Rs.8628/-(2250+2878+3500). The net profit out of this
comes to Rs.3852/- per bus per day. On an average each depot sends 8 to 10 bus in a month.
Conservatively speaking the monthly profit out of this type of service is Rs.30816/-(3852*8) per depot.
Now Hyderabad and secunderabad regions constitutes of 16 and 12 depots respectively, total revenues
for the regions will be Rs.4,93,056/- and 3,69,792/- per month, if it is converted to yearly basis now
the figures comes to Rs. 59,16,672/- and Rs. 44,37,504/- which are considerable amount and could
not be neglected for an organization which is running in losses.
If the same is doubled by the usage of DGT type of buses for the purpose of Goods transport as Packers
and movers, in one year the losses can be reduced by Rs. 59,16,672/- for Hyderabad region and
Rs.44,37,504/- for Secundrabad Region. After a period of five year the total revenue generated out the
Goods transport vehicles could come to Rs. 2,95,83,360/- for Hyderabad region and Rs. 2,21,87,520/-
for Secundrabad region.

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Table No. 5
Table Showing the Revenue Generation on Hire Bus services by Hyderabad Region
S. No Particulars Amount
1 Normal Charges for Express bus 10140
2 Additional Fair for 4 Hours 2340
3 Total Fair for the Bus 12480
4 Cost to earn this revenue constitutes Drivers Pay 2250
5 Diesel Charges 2878
6 Opportunity cost for this revenue 3500
7 Total cost comes to 8628
8 Net profit on hire per bus per trip comes to 3852
9 If 8 buses are Hired in a depot every month 30816
10 For Hyderabad Region per Month 493056
11 For Hyderabad Region per Year 5916672
12 For Hyderabad Region for 3 Years 17750016
13 For Hyderabad Region for 6 Years 35500032
14 For Hyderabad Region for 9 Years 53250048

Table No. 6
Table Showing the Revenue Generation on Hire Bus services by Secunderabad Region
S. No Particulars Amount
1 Normal Charges for Express bus 10140
2 Additional Fair for 4 Hours 2340
3 Total Fair for the Bus 12480
4 Cost to earn this revenue constitutes, Drivers Pay 2250
5 Diesel Charges 2878
6 Opportunity cost for this revenue 3500
7 Total cost comes to 8628
8 Net profit on hire per bus per trip comes to 3852
9 If 8 buses are Hired in a depot every month 30816
10 For Secundrabad Region per Month 369792
11 For Secundrabad Region per Year 4437504
12 For Secundrabad Region for 3 Years 13312512
13 For Secundrabad Region for 6 Years 26625024
14 For Secundrabad Region for 9 Years 39937536

Above figures depict the fact, that there exist a better opportunity for generation of revenues under
‘other revenues’ head. A single trip may give a net profit of Rs. 3852/- to the corporation, if suppose
only eight buses are hired in a month the profit will be Rs.30816/-. When it is converted to annual

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 Journal of Exclusive Management Science – November 2017 - Vol 6 Issue 11 – ISSN 2277-5684

basis this comes to Rs. 5916672/-. Conservatively speaking if the same trend is followed for nine years
the net profit may increase to Rs. 53250048/-, which is not a small amount for Hyderabad Region.
A single trip may give a net profit of Rs. 3852/- to the corporation, if suppose only eight buses are hired
in a month the profit will be Rs.30816/-. When it is converted to annual basis this comes to Rs.
4437504/-. Conservatively speaking if the same trend is followed for nine years the net profit may
increase to Rs. 39937536/-, which is not a small amount for Secunderabad Region.
Findings
 It has been found out that the corporation is not concentrating on the various aspects of avenues of
revenues that could have been en-cashed.
 There exists a lot of opportunity to enhance the other sources of revenue for example Advertisement,
utilization of land and building for commercial purpose.
 Over the due course of time not much concentration has been made on optimum utilization assets
concept by the corporation.
Conclusions
 The corporation can concentrate on goods transportation also instead of totally depending on the
Public transport, as it is followed by other Road Transport Corporations in the country.
 The concept of optimum utilization of fixed assets is not followed by the corporation with which the
revenues are forgone that can be earned easily. Thus the idle assets should be utilized enhance the
other revenue sources.
 The concept of DGT should be prolonged for general transportation goods to generate additional
revenues for the corporation.
Bibliography
Khan.R.R., Transport Management, Himalaya Publishing House, Bombay, 1980.
Mahajan.V.S. (ed) (1991), Transport Planning, Policy Enterprises in India, Asia Publishing House,
Bombay.
Rajeswari.G., Public Sector Performance of State Road Transport Corporation, APH Publishing
Corporation, New Delhi, 1998.
Donald J.Bowersox, Pal J.Calabro, Geore D.Wagenheinm., Introduction to Transportation, McMillan
Publishing Company, New York, 1981.
Richard E.Ward., Transportation and Society in Paul W.Devore (Ed) Introduction to Transportation,
Davis Publications, Worcester, 1983.
Ramanadham.V.V. , Nationalised Road Services in Hyderabad, Orient Publishing Company, Madras,
1955.
Mathew M.O., Rail and Road Transport in India – A Study in Optimum Size and Organisation, Book
Agency, Calcutta, 1964.
Sharma.K.K ., Motor Transport in Rajasthan, Sterling Publishers, New Delhi,1975.
Pandu Ranga Rao.D.,Trends in Indian Transport System, Inter India Publications, New Delhi, 1985.
Websites:
 www.asrtu.org
 www.apsrtconline.in
 www.tsrtcinfo.co.in
 TSRTC Wide Area Network

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